M&M Moves Across Lake, Sets Stage for Growth

SEATTLE-As part of a plan to grow its local operations, Marcus & Millichap relocated and expanded its regional headquarters shortly before the end of the year. In Bellevue for 22 years, the office was moved to Downtown and expanded by 40% to more than 9,000 sf.Regional manager Greg Wendelken tells GlobeSt.com that the relocation to Downtown from Bellevue after 22 years will allow his 30-broker operation to grow to about 40 brokers over the course of the next six to 12 months. The planned growth is part of the company’s goal to increase its brokerage market share for investment property sales in the $500,000 to $10-million range.Wendelken says the firm’s bread and butter work has been the sale of apartments and retail on behalf of private investors. Going forward, the company plans to grow and tighten its grip on that market while also expanding into the class B and C office market as investors look to exchange out of multifamily investments and into larger retail or office projects.”As the baby boomers are getting older, they are looking for what they perceive to be more passive type of investments,’” says Wendelken. “They are looking to deal less with trash and toilets [big issues at apartment complexes] and more with professional tenants under professional management.”As for increasing its broker numbers, Wendelken says his office has had record-breaking years the last three years as investors saw low interest rates no better way to invest their money. “We’re seeing rates go up a little bit, but real estate is always a safe haven and the Puget Sound is certainly a proven market for investment real estate. “Wendelken says M&M had talked several times over the past two decades about relocating its office to Downtown Seattle. The last time its lease came due was in 2000, the top of the market, and the company opted to stay in Bellevue. It chose to make the move across the water this time around in part because it was going to have change buildings regardless, as its space at Key Center had been packaged for lease to Safeco spin-off Symetra Financial. In addition, because of Bellevue’s quick recovery there are more properties for sale on the Seattle side of the lake and a larger pool of brokers to choose from as it expands. Finally, there is more space available to choose from in the Downtown Seattle market, which means better lease rates.